Solar module maker Saatvik Green Energy Limited is gearing up for a sharp acceleration in its investment programme, with capital expenditure expected to reach around ₹2,500 crore in FY27, building on heavy spending in the current financial year to expand capacity and deepen backward integration.
The push comes as new manufacturing lines are set to begin commercial production from April, demand remains robust across domestic solar projects, and global supply chains open fresh opportunities for Indian manufacturers — particularly in the US market.
In an interaction with Financial Express, Prashant Mathur, CEO of Saatvik Green Energy, spoke about the company’s expansion roadmap, pricing dynamics and evolving industry landscape.
Q: What will the expanded investment programme focus on over the next two years?
In FY26, we are deploying close to ₹1,850 crore mainly towards expanding module capacity and setting up solar cell manufacturing. A portion of these projects will continue into FY27, along with fresh investments that will take total capex to about ₹2,500 crore. The long-term objective is to build an integrated manufacturing platform — strengthening modules first, followed by cells, ingots and wafers — which will significantly improve cost control and margin stability.
Q: When will the new capacities begin contributing meaningfully to revenues?
Commercial production is targeted from April, with ramp-up through the first quarter of the new financial year. Nearly 4 GW of high-efficiency module capacity will be progressively commissioned, designed to serve large domestic utility-scale projects as well as export markets such as the US.
Q: How have recent cost movements affected pricing and profitability?
During the December quarter, module prices jumped around 14–16% compared with the previous quarter, driven primarily by higher commodity inputs such as silver, copper and steel, along with volatility in polysilicon prices. Solar manufacturing is inherently linked to raw material cycles, and price adjustments largely reflect cost pass-through rather than any slowdown in demand.
Q: How resilient are margins amid raw material volatility?
Manufacturing margins remain structurally healthy. EBITDA margins of around 13% are strong for this business. While short-term pressure arises when input costs spike sharply, robust demand allows partial recovery. Over time, backward integration into cells and upstream components will further stabilise margins.
Q: The US market is being seen as a major opportunity. How is Saatvik positioned?
Historically, the US contributed less than 1% of our revenues, mainly due to tariffs and compliance barriers. That landscape is changing rapidly. The US remains one of the world’s largest solar markets, and diversification of supply chains is opening significant opportunities for Indian manufacturers. We are aligning our products with traceability and documentation requirements to serve this market, which could become a meaningful growth driver over the next few years.
Q: Are you expanding beyond solar modules?
Yes, we have already launched inverters for residential and small commercial rooftop segments, with sales underway in the domestic market. This complements our core business while integrated manufacturing remains our strategic focus.
Q: How do you see India’s solar manufacturing sector evolving?
The industry is heading toward consolidation. Rapid capacity additions have occurred, but long-term success will belong to players with scale, technology, strong balance sheets and integrated operations. Pure-play module manufacturers without upstream control will face increasing pressure.